AES has signed power purchase agreements (PPAs) to deliver 4 GW of renewables in the U.S. this year. The acquisition of Community Energy would enhance its expansion efforts with a strong pipeline and skilled development workforce.
Community Energy has developed more than 3 GW of solar and storage projects. It also opened the market for utility-scale solar by developing 100 MW scale solar projects in seven states in the U.S. It has developed about 5% of all utility-scale solar built in the U.S. to date.
AES, which operates in 13 countries with a revenue of $9.6 billion in 2020, said its renewables portfolio in the U.S. includes 4.4 GW of operating assets and 5.7 GW of signed PPAs. The company has taken over solar assets from Community Energy in the past too.
The financial terms of the acquisition were not disclosed.
Commenting on the acquisition, Leo Moreno, President of AES Clean Energy, said Community Energy’s 10 GW pipeline would increase AES’ pipeline to over 40 GW across the country.
In November 2021, AES Corporation signed a 15-year agreement to provide round-the-clock renewable energy to Microsoft’s data centers in Virginia. The agreement involved existing renewable energy projects under a long-term contract and additional renewable resources in the region. The round-the-clock power would come from a 576 MW portfolio, including wind, solar, and battery energy storage assets in the PJM market.
In June, AES Indiana, a subsidiary of AES Corporation, announced the acquisition of the Hardy Hills 195 MW solar project in Clinton County, Indiana.
It also announced plans to invest $3 billion to build 2.3 GW of renewables and energy storage through 2024 in Chile and Colombia.
According to Mercom’s Solar Funding and M&A Report, there were 29 solar mergers and acquisition transactions in Q3 2021 compared to 34 in Q2 2021. There were 17 transactions in Q3 2020.